Formex has had a long and proud association with Volkswagen South Africa (VWSA). We have been a key component manufacturer and supplier for the German car brand since the early 2000s. Since then, our partnership has evolved steadily and culminated in 2018 when Formex started manufacturing large assemblies for VWSA vehicles.
This partnership has now expanded and Formex will be assembling and stamping automotive components for the new VW Polo in South Africa. This new project entails 33 new parts created with 42 different tools. The expansion will see Formex become a key supplier for around 30 000 cars per year for the next seven years.
“I think this project is the first of many to come. In this process we have cemented our relationship and have VW’s full confidence in a local transformed company like Formex. VW is serious about transformation and transforming the value chain and this is a sound example of a respected partnership” states Formex Industries Commercial Executive, Mihlali Sogoni.
Recent investment in manufacturing
Formex is able to meet this high capacity largely due to its recent investment of R70-million in new machinery, including metal presses. This opened up new opportunities for us as we quickly grew our output and manufacturing capabilities. This extended VWSA contract is the latest result of our investment, along with other partnership deals with South African original equipment manufacturers (OEMs).
The new VWSA project will bring many benefits to the Nelson Mandela Bay area. Formex usually sources 70% of its raw materials and services from this localised region. However, for the VWSA project, in particular, more than 80% of these materials and services will come from Nelson Mandela Bay. This will inject just under R60-million per year, for the next seven years, into the Gqeberha economy.
Our B-BBEE rating attracts partners like VWSA
Formex Industries is a Level 2 B-BBEE contributor, which brings additional benefits to OEMs and partners. This rating assists automotive brands with their own B-BBEE ratings. Our partners, such as VWSA, are able to reap further benefits by working with us. In particular, VWSA and other vehicle manufacturers benefit from the ADTP Government Incentive Scheme when they choose suppliers with a B-BBEE rating.
“Over time, we have cemented our valued relationship and have earned VW’s full confidence in a local transformed company like Formex,” explains Sogoni. “VWSA is serious about transformation and transforming the value chain, and this is the best example of a respected partnership and our contribution to such,” he adds.
VWSA was recently recognised as a top employer by the Top Employers Institute – a company that was established in 1991 and awards leading businesses in over 120 countries. This accreditation was given to VWSA for its commitment to its employees and their safety during the Covid-19 pandemic. Formex is proud to be associated with a dedicated and invested automotive brand that has the best interests of South Africans at heart.
Formex Industries is a metal forming and assembly company that supplies a variety of complex products to the local automotive industry and the export market. The company is based in the Nelson Mandela Bay metropole, South Africa’s foremost region for automotive manufacturing and export.
Formex is a supplier with over 80% black ownership, of which more than 40% are black women. The company is owned by Deneb Investments Limited – a subsidiary of Hosken Consolidated Investments Limited (HCI) – one of South Africa’s biggest true B-BBEE companies listed on the Johannesburg Stock Exchange (JSE).
Follow us on Facebook for the latest industry news and features relating to our products and services.